Exchange rate uncertainty and the demand for U.S. Soybeans

Margot Anderson, Philip Garcia

Research output: Contribution to journalArticlepeer-review

Abstract

This study examines the effects of exchange rate uncertainty on bilateral soybean trade flows and finds that imports for Japan. France, and Spain are sensitive to short-term variations in nominal bilateral exchange rates. This research extends previous work by focusing on bilateral trade for a single commodity, using a longer sample period, and testing over a variety of model specifications. The results suggest that the effects vary across countries depending on access to forward markets, the availability of alternative soybean suppliers, the degree of market concentration in the domestic soybean processing sector, and the degree of currency risk importers are willing to assume.

Original languageEnglish (US)
Pages (from-to)721-729
Number of pages9
JournalAmerican Journal of Agricultural Economics
Volume71
Issue number3
DOIs
StatePublished - Aug 1989
Externally publishedYes

Keywords

  • Distributed lags
  • Exchange rate risk
  • Soybean trade
  • Trade and uncertainty

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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